The price of oil goes up to $ 100 … and “OPEC” will increase production to stabilize the market

“Al Jazeera” – Economy:

Jatwa Investment Company Report on Global Oil Markets: The average price of Brent crude for the third quarter of 2021 reached about $ 74 per barrel in the third quarter of 2021, up 7% year-on-year and 71% over the same period last year.

Brent crude prices continued to recover in the fourth quarter, with the index rising 10 percent from September levels. Although some supply problems in the US Gulf have contributed to the rise in prices over the past two months, the recovery came primarily as a result of demand. The launch of vaccination campaigns around the world helped ease controls on the movement, and contributed to an increase in the consumption of transport fuels (jet fuel and gasoline) to reach pre-epidemic levels, while naturally high gas prices prompted gas buyers to look for alternatives to convert oil into gas in power generation. .

Looking ahead, oil prices are likely to rise further in the future if the use of crude oil to replace gas is accelerated during the winter months. If this acceleration is combined with unplanned interruptions in crude oil production (from Libya, for example), it could push oil prices to $ 100 a barrel.

However, such high prices will lead OPEC and its allies to move and increase oil production beyond current levels to build stability in the oil market, and will often encourage moderate increases in shale oil production.

The report added, “OPEC” is actually on a quarterly basis. If achieved) weakens the possibility of being $ 100 in the long run. Therefore, while we acknowledge that there is a risk that real prices will be as high as $ 67 per barrel of Brent crude oil for 2021, we do not change our overall Brent forecast for 2022 to $ 65 per barrel as a whole. , for now.